Avocado Guild recently announced the company raised $18 million in a Series A round of funding, bringing its valuation to $200 million. According to PYMNTS, Avocado plans on spreading its play-to-earn operations to other games while purchasing NFTs in order to bring more value to virtual worlds.
Animoca Brands and QCP Soteria Node (QSN) led this funding round. Additional participation came from Solana Ventures, Three Arrows Capital, Polygon Studios, and so on.
“Avocado co-founder and CEO Brendan Wong said Avocado is a ‘metaverse of metaverses,’ allowing players to participate in numerous digital worlds,” reads a report from PYMNTS.
Avocado is a guild that employs gamers who can mine cryptocurrency from a variety of games like Axie Infinity and The Sandbox. According to a report, guilds often sign revenue-sharing agreements with their employees.
The Profit‘s Take:
When I read this story, I immediately thought of the evil corporation in the movie Ready Player One. It’s weird because everybody is saying loot boxes aren’t good for gaming, but I am not too keen on giving out loans to players so that they can play video games for you while they pay you back. They don’t call these loans, though. Guilds “run scholarship programs.” Somebody that works for Avocado lends in-game assets to the players, who are called “scholars.” The crazy part is it’s working. If they have a $200 million valuation, then, clearly, lending is a good business. I’m fascinated by this because it’s reminiscent of the small business loan lending industry that had used to have 30% to 40% interest rates. It’ll be interesting to see how they spin this long-term and what words they end up using, but you can’t argue with the results. The numbers show this is working. Coming soon: The Business of Esports “scholarship.”
(All information was provided by PYMNTS and The Block Crypto)
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